Oil settles lower as US inventories disappoint market

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[NEW YORK] Crude prices declined slightly on Wednesday as US government data showed inventories drew down less than an industry report had suggested on Tuesday. Read more at The Business Times.

Crude prices declined slightly on Wednesday as US government data showed inventories drew down less than an industry report had suggested on Tuesday.[NEW YORK] Crude prices declined slightly on Wednesday as US government data showed inventories drew down less than an industry report had suggested on Tuesday.

Brent crude futures settled down 10 cents at US$71.62 a barrel. During the session, the contract touched US$72.27 a barrel, the highest this year.US West Texas Intermediate crude futures settled down 29 cents per barrel at US$63.76 a barrel. The contract touched an intraday high of US$64.61 a barrel, just shy of a 2019 high of US$64.79 hit last week.Crude continued to be supported by steady economic growth in China.

"The demand side of the equation got a substantial fillip via today's China data suggesting prices will continue to move higher on improving global growth and risk sentiment," said Stephen Innes, head of trading at SPI Asset Management. "Buyers are shying away in view of US policy uncertainty regarding waivers to import Iranian crude oil," BNP Paribas strategist Harry Tchilinguirian told the Reuters Global Oil Forum.

 

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